MSCI will introduce a rule excluding non-operating companies from inclusion in GIMI. The rule will apply as of the close of trading on 30 November, with the final list to be announced on 11 November. Strategy, Meta Planet and Yellow Cake have been named as the 3 potentially affected companies.
MSCI announced that it will introduce a new quantitative screen excluding companies with a significant proportion of non-operating assets from the MSCI Global Investable Market Index (GIMI). The revision is based on the consultation proposal presented in August, with minor modifications to make it applicable in practice.
The rule will be applied in conjunction with the regular November index review and will formally take effect as of the close of trading on 30 November. A list of current constituents that may be affected will be published on the MSCI official website, and the final list is scheduled to be announced on 11 November.
The new criteria use 5 indicators, including the ratio of operating assets to total assets, and assess eligibility using 4 or more financial indicators. Companies deemed ineligible in their most recent 2 fiscal periods will be subject to exclusion, while companies not yet included may not be added if deemed ineligible in either of the 2 periods.